CACI Awarded $319 Million Task Order to Provide Intelligence Systems Expertise to the U.S. Army

Rhea-AI Summary

CACI International Inc (NYSE: CACI) has been awarded a five-year task order valued at up to $319 million by the U.S. Army's Communications-Electronics Command (CECOM). The contract aims to provide intelligence systems expertise to the Army Reprogramming Analysis Team-Program Office (ARAT-PO). CACI will help establish and maintain a state-of-the-art environment for delivering current threat data to support multi-domain operations.

The company will offer high fidelity threat and signals analysis, modeling and simulation, testing, reprogramming support, and new mission data sets to domestic customers and foreign military partners. CACI's approach will utilize a CI/CD (continuous integration/continuous delivery) software cycle to meet current mission requirements while modernizing and advancing electronic warfare capabilities.

Positive

• Secured a $319 million task order from the U.S. Army
• Five-year contract duration provides stable revenue stream
• Expands CACI's presence in intelligence systems and electronic warfare
• Opportunity to serve both domestic and foreign military partners

Negative

• None.

Insights

Defense Technology Analyst

The $319 million task order awarded to CACI International Inc by the U.S. Army is a significant development in the defense technology sector. This contract highlights the growing importance of electronic warfare (EW) and electromagnetic spectrum (EMS) capabilities in modern military operations.

The five-year duration of this contract provides CACI with a stable revenue stream and strengthens its position in the defense intelligence systems market. The company's expertise in CI/CD (continuous integration/continuous delivery) software cycle approach for threat analysis and simulation is particularly noteworthy, as it aligns with the military's need for rapid, adaptable intelligence solutions.

From an investor's perspective, this contract has several positive implications:

• It demonstrates CACI's strong relationship with the U.S. Army and its ability to secure high-value, long-term contracts.
• The focus on evolving threats in kinetic and EMS domains positions CACI at the forefront of a critical and growing area of defense technology.
• The inclusion of foreign military partners in the contract scope suggests potential for international expansion and additional revenue streams.

However, investors should also consider potential risks, such as the challenges of delivering complex technological solutions and the possibility of budget constraints or shifts in defense priorities. Overall, this contract reinforces CACI's strong market position in defense intelligence systems and suggests positive growth prospects in this sector.

Financial Analyst

The $319 million task order awarded to CACI International Inc represents a significant financial win for the company. To put this in perspective, CACI's total revenue for the fiscal year 2022 was approximately $6.2 billion. This new contract, spread over five years, could contribute roughly 1% to 1.5% annually to the company's top line, assuming even distribution.

Key financial implications include:

• Revenue Stability: The five-year duration provides predictable cash flow, which is valuable for financial planning and investor confidence.
• Margin Potential: Given CACI's existing expertise in this area, there's potential for healthy profit margins on this contract.
• Market Position: This win reinforces CACI's strong position in the defense contracting market, which could lead to future contract wins.

Investors should note that while this contract is positive, it's important to consider it in the context of CACI's overall financial health and market position. The company's ability to execute on this contract efficiently will be important for maximizing its financial impact.

Additionally, the contract's focus on advanced technologies like electromagnetic spectrum capabilities and software-defined systems aligns with high-growth areas in defense spending, potentially positioning CACI for further growth in these sectors.

RESTON, Va.--(BUSINESS WIRE)-- CACI International Inc (NYSE: CACI) announced today that it has been awarded a five-year task order valued at up to $319 million to provide intelligence systems expertise to the U.S. Army, Communications-Electronics Command (CECOM), Software Engineering Center (SEC), Electronic Warfare and Sensors Directorate (IEWSD), Army Reprogramming Analysis Team-Program Office (ARAT-PO).

Through the ARAT task order, CACI will help the Army, other Services, and foreign military partners establish and maintain a state-of-the-art, on-demand environment that provides the most current threat data possible to support multi-domain operations.

“Kinetic and electromagnetic spectrum (EMS) threats are evolving rapidly, growing more sophisticated by the day,” said John Mengucci, CACI President and Chief Executive Officer. “Our decade-plus years of experience with the Army’s systems, including ARAT’s Simulation and Modeling Framework, combined with our deep expertise in the EMS and software-defined capabilities, will support ARAT-PO’s current mission requirements while modernizing and advancing their EW capabilities.”

Taking a CI/CD (continuous integration/continuous delivery) software cycle approach, CACI will provide domestic customers and foreign military partners with high fidelity threat and signals analysis, modeling and simulation and testing, reprogramming support, and delivery of new mission data sets.

About CACI

At CACI International Inc (NYSE: CACI), our 24,000 talented and dynamic employees are ever vigilant in delivering distinctive expertise and differentiated technology to meet our customers’ greatest challenges in national security. We are a company of good character, relentless innovation, and long-standing excellence. Our culture drives our success and earns us recognition as a Fortune World's Most Admired Company. CACI is a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, visit us at www.caci.com.

There are statements made herein which do not address historical facts, and therefore could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the risk factors set forth in CACI’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023, and other such filings that CACI makes with the Securities and Exchange Commission from time to time. Any forward-looking statements should not be unduly relied upon and only speak as of the date hereof.

CACI-Contract-Award-Business Wire

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731638063/en/

Corporate Communications and Media:

Lorraine Corcoran

Executive Vice President, Corporate Communications

(703) 434-4165, lorraine.corcoran@caci.com

Investor Relations:

George Price

Senior Vice President, Investor Relations

(703) 841-7818, george.price@caci.com

Source: CACI International Inc

FAQ

What is the value and duration of CACI's new contract with the U.S. Army?

CACI has been awarded a five-year task order valued at up to $319 million by the U.S. Army's Communications-Electronics Command (CECOM).

What services will CACI provide under the ARAT task order?

CACI will provide intelligence systems expertise, including threat and signals analysis, modeling and simulation, testing, reprogramming support, and delivery of new mission data sets to support multi-domain operations.

How will CACI's work benefit the U.S. Army and its partners?

CACI's work will help establish and maintain a state-of-the-art environment for delivering current threat data, supporting both the U.S. Army and foreign military partners in addressing evolving kinetic and electromagnetic spectrum threats.

What approach will CACI use to deliver its services under the new contract?

CACI will use a CI/CD (continuous integration/continuous delivery) software cycle approach to meet current mission requirements while modernizing and advancing electronic warfare capabilities.